II 

118TH CONGRESS 

2D SESSION S. 3905 

To amend title I of the National Housing Act to increase the loan limits 

and clarify that property improvement loans may be used for construction 

of accessory dwelling units. 

IN THE SENATE OF THE UNITED STATES 

MARCH 11, 2024 

Mr. REED (for himself and Ms. LUMMIS) introduced the following bill; which 

was read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

A BILL 

To amend title I of the National Housing Act to increase 

the loan limits and clarify that property improvement 

loans may be used for construction of accessory dwelling 

units. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Property Improvement 

5 and Manufactured Housing Loan Modernization Act of 

6 2024’’. 


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1 SEC. 2. NATIONAL HOUSING ACT AMENDMENTS. 

2 (a) IN GENERAL.—Section 2 of the National Housing 

3 Act (12 U.S.C. 1703) is amended— 

4 (1) in subsection (a), by inserting ‘‘construction 

5 of additional or accessory dwelling units, as defined 

6 by the Secretary,’’ after ‘‘improvements,’’; and 

7 (2) in subsection (b)— 

8 (A) in paragraph (1)— 

9 (i) by striking subparagraph (A) and 

10 inserting the following new subparagraph: 

11 ‘‘(A) $75,000 if made for the purpose of financ12 ing alterations, repairs and improvements upon or in 

13 connection with an existing single-family structure, 

14 including a manufactured home;’’; 

15 (ii) in subparagraph (B)— 

16 (I) by striking ‘‘$60,000’’ and in17 serting ‘‘$150,000’’; 

18 (II) by striking ‘‘$12,000’’ and 

19 inserting ‘‘$37,500’’; and 

20 (III) by striking ‘‘an apartment 

21 house or’’; 

22 (iii) by striking subparagraphs (C) 

23 and (D) and inserting the following: 

24 ‘‘(C)(i) $106,405 if made for the purpose of fi25 nancing the purchase of a single-section manufac26 tured home; and 


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1 ‘‘(ii) $195,322 if made for the purpose of fi2 nancing the purchase of a multi-section manufac3 tured home; 

4 ‘‘(D)(i) $149,782 if made for the purpose of fi5 nancing the purchase of a single-section manufac6 tured home and a suitably developed lot on which to 

7 place the home; and 

8 ‘‘(ii) $238,699 if made for the purpose of fi9 nancing the purchase of a multi-section manufac10 tured home and a suitably developed lot on which to 

11 place the home;’’; 

12 (iv) in subparagraph (E)— 

13 (I) by striking ‘‘$23,226’’ and in14 serting ‘‘$43,377’’; and 

15 (II) by striking the period at the 

16 end and inserting a semicolon; 

17 (v) in subparagraph (F), by striking 

18 ‘‘and’’ at the end; 

19 (vi) in subparagraph (G), by striking 

20 the period at the end and inserting ‘‘; 

21 and’’; 

22 (vii) by inserting after subparagraph 

23 (G) the following: 


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1 ‘‘(H) such principal amount as the Secretary 

2 may prescribe if made for the purpose of financing 

3 the construction of an accessory dwelling unit.’’; and 

4 (viii) in the matter preceding para5 graph (2)— 

6 (I) by striking ‘‘regulation’’ and 

7 inserting ‘‘notice’’; 

8 (II) by striking ‘‘increase’’ and 

9 inserting ‘‘set’’; 

10 (III) by striking ‘‘(ii), (C), (D), 

11 and (E)’’ and inserting ‘‘through 

12 (H)’’; 

13 (IV) by inserting ‘‘, or as nec14 essary to achieve the goals of the Fed15 eral Housing Administration, periodi16 cally reset the dollar amount limita17 tions in subparagraphs (A) through 

18 (H) based on justification and meth19 odology set forth in advance by regu20 lation’’ before the period at the end; 

21 and 

22 (V) by adjusting the margins ap23 propriately; 

24 (B) in paragraph (3), by striking ‘‘ex25 ceeds—’’ and all that follows through the period 


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1 at the end and inserting ‘‘exceeds such period 

2 of time as determined by the Secretary, not to 

3 exceed 30 years.’’; 

4 (C) by striking paragraph (9) and insert5 ing the following: 

6 ‘‘(9) ANNUAL INDEXING OF CERTAIN DOLLAR

7 AMOUNT LIMITATIONS.—The Secretary shall develop or 

8 choose 1 or more methods of indexing in order to annually 

9 set the loan limits established in paragraph (1), based on 

10 data the Secretary determines is appropriate for purposes 

11 of this section.’’; and 

12 (D) in paragraph (11), by striking 

13 ‘‘lease—’’ and all that follows through the pe14 riod at the end and inserting ‘‘unless such lease 

15 meets the terms and conditions established by 

16 the Secretary’’. 

17 (b) DEADLINE FOR DEVELOPMENT OR CHOICE OF

18 NEW INDEX; INTERIM INDEX.— 

19 (1) DEADLINE FOR DEVELOPMENT OR CHOICE

20 OF NEW INDEX.—Not later than 1 year after the 

21 date of enactment of this Act, the Secretary of 

22 Housing and Urban Development shall develop or 

23 choose 1 or more methods of indexing as required 

24 under section 2(b)(9) of the National Housing Act 


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1 (12 U.S.C. 1703(b)(9)), as amended by subsection 

2 (a) of this section. 

3 (2) INTERIM INDEX.—During the period begin4 ning on the date of enactment of this Act and end5 ing on the date on which the Secretary of Housing 

6 and Urban Development develops or chooses 1 or 

7 more methods of indexing as required under section 

8 2(b)(9) of the National Housing Act (12 U.S.C. 

9 1703(b)(9)), as amended by subsection (a) of this 

10 section, the method of indexing established by the 

11 Secretary under that section before the date of en12 actment of this Act shall apply. 

13 SEC. 3. HUD STUDY OF FACTORY-BUILT HOUSING. 

14 (a) DEFINITIONS.—In this section: 

15 (1) FACTORY-BUILT HOUSING.—The term ‘‘fac16 tory-built housing’’ includes manufactured homes 

17 and modular homes. 

18 (2) MANUFACTURED HOME.—The term ‘‘manu19 factured home’’ means any home constructed in ac20 cordance with the construction and safety standards 

21 established under the National Manufactured Hous22 ing Construction and Safety Standards Act of 1974 

23 (42 U.S.C. 5401 et seq.). 

24 (3) MODULAR HOME.—The term ‘‘modular 

25 home’’ has the meaning given the term in section 


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1 1027(c) of the Consumer Financial Protection Act 

2 of 2010 (12 U.S.C. 5517(c)). 

3 (b) STUDY.—The Secretary of Housing and Urban 

4 Development shall conduct a study and submit to Con5 gress a report on the cost effectiveness of factory-built 

6 housing, that includes— 

7 (1) an analysis of the reductions in costs from 

8 the centralization of manufacturing compared to the 

9 expense of transferring the unit from the factory to 

10 its final location; 

11 (2) the advantages in precision and reduction of 

12 materials waste associated with factory-built hous13 ing; 

14 (3) the expected replacement and maintenance 

15 costs over the first 40 years of life of factory-built 

16 homes; and 

17 (4) opportunities for use beyond single-family 

18 housing, such as applications in accessory dwelling 

19 units, two- to four-unit housing, and large multi20 family housing. 

Æ 


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